« previous next »

Author Question: Assume two people live in the same neighborhood, the same size house and earn identical incomes. ... (Read 65 times)

nenivikky

  • Hero Member
  • *****
  • Posts: 516
on: Jun 29, 2018
Assume two people live in the same neighborhood, the same size house and earn identical incomes. Both are unmarried without children. How might one of them actually be poorer than the other?
 
  What will be an ideal response?

Question 2

If the Federal Reserve chooses to fight high unemployment with expansionary monetary policy and firms and consumers expect this policy to increase inflation, which of the following would you expect to see?
 
  A) an upward shift of the short-run Phillips curve
  B) a downward shift of the short-run Phillips curve
  C) a decrease in the long-run aggregate supply curve
  D) Both B and C are correct answers.


jackie

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 29, 2018
Answer to Question 1

Poverty is not measured strictly based on income alone. There may be other factors that make one of them poorer than the other. One might be the amount of human capital that one person has that the other does not, like education or training. Another might be the amount of assets each has or the lack of good health. There are a myriad of reasons why one of them may be poorer than the other even though they make identical incomes.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Old people Old people
Alan Price - Poor People Alan Price - Poor People
Faith Ringgold, God Bless America, No. 13 from the series American People. Faith Ringgold, God Bless America, No. 13 from the series American People.
Do you see animals or people first? Do you see animals or people first?
By the People: A History of the United States, AP Edition By the People: A History of the United States, AP Edition
People who are color-blind see colors differently. (a) Those with normal vision see the red leaves. People who are color-blind see colors differently. (a) Those with normal vision see the red leaves.
Video: Morphology of a tomato plant

For a complete list of videos, visit our video library